About Permits and Licenses in Japan

April 28, 2020

Question:

I heard that there are businesses in Japan that require government licenses. What are these documents?

Answer:

A government license refers to documentation issued by administrative bodies such as the police station, health center, prefectural government, etc., which is a requirement to be able to operate specific kinds of businesses.

Explanation:

Government licenses

Government licenses here loosely refers to documents that are either submitted to (notifications, etc.) or obtained from (permits, licenses, etc.) administrative bodies such as the police station, health center, prefectural government, etc. that signify to the authority to conduct certain kinds of business. Operating a business despite failure to obtain the necessary documentation is a criminal activity and is punishable under law.

Applying for government licenses is generally done after the incorporation/registration of a company or branch office in Japan. However, it is important to be aware of what kinds of government licenses your business will need even prior to the establishment of the company, as there are some permits or licenses that include capital or business purposes requirements, which are indicated in the company’s articles of incorporation, facility/location-related requirements, which are usually decided early on in the establishment process.

The different government licenses are divided into 5 classifications, depending on how they are processed, their requirements, etc. (refer to Chart 7-4).

Chart 7-4　Classifications of Government Licenses

Types of government licenses

Depending on the business contents, the permits and licenses as well as the government agency/office where applications are filed differ. Chart 7-5 shows typical businesses that require government licenses.

Chart 7-5　Types of Government Licenses